ACCOUNTING HOMEWORK

Print by: Sadu Singh FUNDAMENTALS OF ACCOUNTING II: 352923 / Project

*Problem 12-11A The comparative balance sheets for Vanco Company as of December 31 are presented below.

VANCO COMPANY Comparative Balance Sheets

December 31 Assets 2012 2011 Cash $ 99,688 $ 65,970 Accounts receivable 73,300 85,028 Inventory 222,026 208,172 Prepaid expenses 22,400 30,786 Land 212,570 190,580 Equipment 329,850 227,230 Accumulated depreciation—equipment (65,970 ) (51,310 ) Buildings 293,200 293,200 Accumulated depreciation—buildings (87,960 ) (58,640 )

Total $1,099,104 $991,016

Liabilities and Stockholders’ Equity Accounts payable $ 65,574 $ 52,776 Bonds payable 439,800 439,800 Common stock, $1 par 293,200 234,560 Retained earnings 300,530 263,880

Total $1,099,104 $991,016

Additional information:

1. Operating expenses include depreciation expense of $61,572. 2. Land was sold for cash at book value. 3. Cash dividends of $17,592 were paid. 4. Net income for 2012 was $54,242. 5. Equipment was purchased for $134,872 cash. In addition, equipment costing $32,252 with a book value of

$14,660 was sold for $11,728 cash. 6. 58,640 shares of $1 par value common stock were issued in exchange for land with a fair value of $58,640.

Prepare a statement of cash flows for the year ended December 31, 2012, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

VANCO COMPANY Statement of Cash Flows

For the Year Ended December 31, 2012

$

Adjustments to reconcile net income to

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$

$

$

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